1 Under what circumstances would the interdependence of firms give rise to a vertical long run AS curve 2 If a shift in the aggregate demand curve from AD 1 to AD 2 in Figure 3 causes a movement from point a to point d in the long run, would a shift in aggregate demand from AD 2 to AD 1 cause a mov...

1 When costs rise by the same percentage as the increase in demand This will occur at full employmen ...

1. Under what circumstances would the interdependence of firms give rise to a vertical long-run AS curve?...

Question:

1. Under what circumstances would the interdependence of firms give rise to a vertical long-run AS curve?

2. If a shift in the aggregate demand curve from AD₁ to AD₂ in Figure 3 causes a movement from point a to point d in the long run, would a shift in aggregate demand from AD₂ to AD₁ cause a movement from point d back to point a in the long run?

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